World Perspectives
wheat

Wheat Optics

The U.S. has six major classes of wheat, with Hard Red Winter (HRW) comprising more than 40 percent of the total. Analysts have noted that the 2022 HRW crop is the smallest since 1957. Drought has certainly impacted harvested acres and yield, but overall U.S. wheat production has been on a steady decline for many years. It has been averaging almost a 1 percent decline per year.  The U.S. is the world’s fifth overall largest producer of wheat, but when looked at by its individual classes, the output is smaller than many other countries’ total output. China and India produce a lot more wheat but are smaller exporters. While the U.S. exports almost half of its far smaller volume of wheat produced, Europe consumes internally 7...

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Market Commentary: Limping Home After a Dreary Week

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Summary of Futures

Dec 25 Corn closed at $4.19/bushel, down $0.0275 from yesterday's close.  Dec 25 Wheat closed at $5.1525/bushel, up $0.005 from yesterday's close.  Nov 25 Soybeans closed at $10.18/bushel, down $0.0575 from yesterday's close.  Dec 25 Soymeal closed at $278.6/short ton, down $0.7...

Competing Manufacturing Data

According to S&P Global, the US manufacturing sector grew for the fourth consecutive month in September. The U.S. manufacturing purchasing managers' index recorded 52 points in September, down from 53 a month prior and indicating a weaker rate of expansion of the manufacturing sector. A rea...

feed-grains soy-oilseeds wheat

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feed-grains soy-oilseeds wheat

Recent Market Volatility Increases Futures Mispricing

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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